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IMDR’s Journal of Management Development & Research 2023-24

we found that while there is a weak positive correlation between the two indices, their

movements are not significantly synchronized. The findings suggest that factors such as
sectoral composition, exchange rates, market-specific dynamics, and geopolitical events play

a crucial role in influencing the performance of each index independently. This highlights the
importance of investors and policymakers adopting diversified strategies that go beyond

simply balancing investments between the Nasdaq and Nifty indices.

For investors, the study suggests exploring alternative diversification strategies and analyzing

standard deviation and variance to make informed decisions. Policymakers, on the other
hand, should consider the independent nature of these indices when formulating economic

policies, taking into account the unique dynamics of each market.

Further research incorporating additional variables and a broader scope may provide deeper
insights into the dynamics between the Nasdaq and Nifty indices within the Indian financial

landscape.

References

 Jain, A., & Bagri, M. (2017). Short term correlation analysis between Nasdaq

and Nifty indices. International Journal of Applied Business and Economic
Research, 15(9), 121134.

 (https://www.researchgate.net/publication/322258281_Shortterm_correlation
_analysis_between_Nasdaq_and_Nifty_indices)

 Sharma, R., & Verma, S. (2019). Long-term relationship between Nasdaq

and Nifty indices: A cointegration analysis. International Journal of
Economics, Commerce and Management, 7(3), 1227.

(https://www.researchgate.net/publication/331269695_Longterm_relationshi

p_between_Nasdaq_and_Nifty_indices_A_cointegration_analysis)
 Gupta, S., Kumar, A., & Singh, N. (2020). Impact of global market

movements on Indian stock market: An event study approach. Journal of
Economics and Finance, 44(2), 294309.

(https://link.springer.com/article/10.1007/s12197019094854)

 National Stock Exchange of India: https://www1.nseindia.com/
 Nasdaq: https://www.nasdaq.com/

 Yahoo finance: https://finance.yahoo.com/

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